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Continued from page 53<br />
outside of the United States, including<br />
Mexico, would be able to quickly deploy<br />
the cadre of highly-skilled professionals<br />
needed to undertake unconventional oil<br />
and gas production.”<br />
Many of these issues are being addressed<br />
as Mexico has tabled energy reform<br />
legislation with the rule-making<br />
process now underway, with results to be<br />
made public as early as March or April of<br />
this year. This legislation has made it more<br />
palatable for the oil and gas industry north<br />
of the Rio Grande to start thinking about<br />
investing in Mexico.<br />
“Now, with the passage of Mexico’s<br />
energy reform, there have been a series<br />
of meetings with the Eagle Ford Consortium<br />
to discuss the establishment of a<br />
binational committee with Mexico,” says<br />
Gonzalez. “The passage of Mexico’s energy<br />
reform legislation will open development<br />
opportunities for United States exploration<br />
and production and oilfield service<br />
companies.”<br />
The development of the Mexican side<br />
of the EFS is critical for Mexico, which, in<br />
spite of sitting on enormous quantities of<br />
untapped natural gas reserves, currently imports<br />
its natural gas from the United States.<br />
Mexico has experienced oil booms in the<br />
past, but recently, oil production has been<br />
steadily declining from a lack of investment<br />
by the federally-controlled PEMEX.<br />
“Eagle Ford and other shale formations in<br />
Mexico clearly represent an opportunity,” says<br />
Tunstall. “Energy reform could be the catalyst<br />
to turn things around. Mexico has an estimated<br />
10.4 billion barrels of proven reserves,<br />
which can be produced using conventional<br />
and unconventional techniques.”<br />
Trivia<br />
Time<br />
US production growth<br />
contributes to global<br />
price stability<br />
Crude oil production growth in the United<br />
States has helped contribute to a global price<br />
stability in 2013. Highlights from significant<br />
events in the United States that affected oil markets<br />
in 2013 include:<br />
• Domestic crude oil production increased<br />
1.0 million bbl/d, rising more than the<br />
combined increases in the rest of the world,<br />
to reach its highest level in 24 years. This<br />
increase marked the largest observed annual<br />
increase in United States history.<br />
• Production exceeded imports during several<br />
weeks for the first time in nearly two<br />
decades.<br />
• Transportation infrastructure improvements<br />
enabled crude oil from Cushing,<br />
Oklahoma, and the Bakken, Permian, and<br />
Eagle Ford tight oil formations to better<br />
reach refineries, reducing the need for foreign<br />
crude oil.<br />
Source: www.eia.gov/todayinenergy/detail.cfm?id=14531<br />
The 1M bpd Race<br />
Total production from Eagle Ford hit<br />
one million barrels per day (bpd) in August<br />
2013 and was projected to rise to 1.09 million<br />
bpd in November of the same year, according<br />
to a report from the United States<br />
Energy Information Administration.<br />
The Bakken was expected to produce<br />
935,000 bpd in October 2013, and<br />
960,000 bpd in November of the same<br />
year. The Bakken has had drilling ongoing<br />
since 2003. The Eagle Ford was initially<br />
seen as a natural gas play and did not have<br />
notable oil drilling until early 2009.<br />
Source: www.rigzone.com/news/<br />
oil_gas/a/129753/EIA_Eagle_Ford_<br />
Shale_Beats_Bakken_to_1_MMbopd_<br />
Milestone#sthash.ID5gecNH.dpuf<br />
BASIN BITS | Spring 2014 55
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